Market Alerts

Upcoming ICAP Methodology Clarification for Energy Service Companies (ESCOs) (Effective May 1, 2026)

Con Edison is updating its ICAP‑related guidelines to ensure consistency with the requirements of the NYISO Market Services Tariff governing the reporting of Adjusted Actual Load for Installed Capacity purposes.

Pursuant to NYISO Market Services Tariff Section 5.11.1, Transmission Owners are required to report ESCO’s load data that fully reflects load reductions associated with their customers participation in Special Case Resources (SCR) and other demand response programs, in order to prevent double‑compensation of demand reductions originated in the calculation of ICAP obligations.

Consistent with Tariff Section 2.1, Adjusted Actual Load reflects actual load adjusted for, among other factors, load reductions associated with Special Case Resources. SCRs are defined in Tariff Section 2.19 as demand side resources capable of interrupting load or operating local generation to reduce load from the transmission or distribution system.

As a result of these tariff‑driven clarifications, ESCOs may experience higher ICAP obligations beginning with the May 1, 2026 Capability Period. ESCOs serving SCR customers should review their portfolios accordingly and be aware of potential ICAP impacts.

Source:
Con Ed ESCO Newsletter ConEdESCONewsletter@coned.com
To:  Con Ed ESCO Newsletter